Answer:
1 a) + asset , + preferred stock
b) + asset , + preferred stock
c) + assets , + stockholder's equity
d) - and + Asset
e) + -Asset
f) - Equity , + liability
g) - Equity , - Asset
journal entry
a) Debit bank 700000 Credit Preferred stock 700000
b) debit land 420000 , credit preferred stock 420000
c) debit bank 768000 credit stockholder's equity 768000
d) Debit investment 270000 credit bank 270000
e) Debit bank 189000 , credit investment 189000
f) Debit dividend 19600 credit shareholders for dividends 19600
g) debit dividends 96000 credit bank 96000
Explanation:
dividends preferred = 7000 + 4200 = 11200 * 1 . 75 = 19600
dividends common stock = 48000 * 25 * 8 % = 96000
